BREAKING: Union wins interim allowance for psychiatrists

The Industrial Relations Commission (IRC) has handed down its decision on psychiatry arbitration — and it has ordered an interim 20% Attraction and Retention Allowance for Staff Specialist psychiatrists.

After months of hearings, expert testimony, and evidence from our members, the IRC has formally recognised what we've been saying for years: NSW mental health services are in deep crisis and we urgently need to take action to keep psychiatrists in our public services.

ASMOF Councillor Dr Ian Korbel stated:

“Psychiatrists resigned in despair at the deterioration of public mental health services, but also in hope that the NSW Government would finally take action. Instead the NSW Government took us to Court.  

Today we have been vindicated by that Court, who have recognised the appalling state of NSW public mental health services. But this is not a time for celebration. It is a call to action for the NSW Government.””This decision will allow us to begin to rebuild the mental health workforce. We need a commitment to bring back those who have resigned and action so that we can keep our junior psychiatrists in NSW.

This is just the first step in fixing our public mental health services and making sure our patients get the care they deserve. Our entire mental health system is under-resourced, from community services to acute care, and it’s time to make change.”

Here's what the Commission has ordered

• A 20% interim Attraction & Retention Allowance for Staff Specialist psychiatrists for 12 months (made up of the Ministry’s 10% “onerous duties” allowance + 10% A&R allowance ordered by the IRC).
• The allowance is to be absorbed into future salary increases to be determined by the IRC.
• The IRC has not granted ASMOF’s other claims at this stage, noting these would require more detailed examination. This includes the rejection of our claim for a DiT allowance.
• The parties must file a draft award reflecting this decision by 17 October (or competing drafts if no agreement).

In making its ruling, the Full Bench stated that a “special case” had been made out for psychiatry and that “the acute shortage is causing a deterioration of the quality of mental health care and deterioration of working conditions of psychiatrists”.

You can read the decision here.

A long time coming

This 20% interim uplift provides some temporary relief for psychiatrists, helping with retention and potentially bringing back some senior staff. While it offers a short-term boost, it falls short of the 25% allowance we fought for, which evidence showed would be needed to fully bring back resigned psychiatrists and attract new recruits.

Over the past two years, vacancy rates for psychiatrists in NSW have surged past 30%, and by late 2024, over 200 psychiatrists submitted resignation letters in protest at deteriorating mental health services, dangerous understaffing, and chronic pay disparities with other states.

Our doctors did not walk away lightly — they left because the system had made it impossible to provide the standard of care their patients deserved.

Despite the overwhelming evidence, successive NSW Governments chose to turn a blind eye to the crisis. This 20% uplift does not deliver pay parity, will not attract new recruits, and is not a solution for the long-term sustainability of psychiatry services in NSW. It is a stop-gap measure — it stems the current bleed but does not fix the system.

Our evidence

We presented compelling evidence, backed up by the powerful testimonies of our members.  

• Mental health emergency presentations have continued to surge, with over 90,000 in 2022–23 alone.
• Training positions have become notoriously difficult to fill due to the challenging work conditions and financial disincentives compared to other specialties and interstate.
• Reliance on VMOs and locums is costing the system more and delivering less. Staff Specialists provide continuity of care, supervision, research, and leadership that short-term contractors cannot.

In stark contrast, the NSW Government came poorly prepared and without any economic modelling.

This is just the beginning

This is a crucial victory for psychiatrists, but the crisis runs deeper. Across NSW, every specialty, every department, and every hospital is under strain.

Our success in this dispute proves what we can achieve when we stand together. Now, we must use this momentum to push for the broader change our entire public health system needs.  

The NSW Government must invest in our communities so that we can keep patients well and out of hospitals

The NSW Government must also deliver on a comprehensive Award reform for all doctors in NSW.

Without securing pay parity and a complete overhaul of working conditions for every doctor, we will continue to lose specialists, and the people of NSW will continue to miss out on the care they deserve. This fight isn't over — this decision is only a first step.

What happens now?

• The 20% Attraction and Retention Allowance will come into effect shortly, pending the draft award process.
• ASMOF and the Ministry must file a draft award by 17 October.
• We will continue to advocate for improvements in the mental health system so that our patients can receive the world-class treatment they deserve.  

We must keep fighting until all doctors in NSW, not just psychiatrists, receive the fair pay, safe working conditions, and respect they deserve.

This allowance is a short-term, stop-gap measure — it will stem the current bleed but does not solve the broader crisis or secure the future of psychiatry services in NSW.

In solidarity.

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